Discussion on Federal Reserve Governor’s Fate

Greg Jarrett, a legal analyst, spoke on Fox Business about the future of Federal Reserve Governor Lisa Cook, stating it hinges on one key question.

Recently, Trump dismissed Cook, citing accusations of falsifying residential documents related to mortgage fraud. In his segment on “The Evening Edit,” Jarrett highlighted the legal implications of Cook’s potential removal.

“The Supreme Court ruled that a president cannot dismiss a federal governor due to absence. So, is that the central point here?” Jarrett remarked during his discussion with guest host Jason Chaffetz.

According to Jarrett, federal law does permit the president to remove Federal Reserve governors for valid reasons, suggesting that if Cook did indeed forge a mortgage document, it might satisfy those legal criteria.

“The law specifies that a governor can be removed for serious causes, typically defined as fraud or gross misconduct. Hence, fraud could certainly qualify,” he explained.

He pointed out that criminal charges are not necessary for this type of removal under the law, predicting that Cook’s situation will likely end up in court eventually. “Sure, she hasn’t faced any criminal accusations, but the legal framework doesn’t require that. We need trustworthy individuals in the Fed,” Jarrett added.

Cook, who secured her position on the Federal Reserve Committee in 2022 after being nominated by Joe Biden, is not alone in facing scrutiny; California Senator Adam Schiff is also under investigation by the Department of Justice for similar issues.

The tension between Trump and the Federal Reserve has noticeably increased lately. Trump has consistently urged Fed Chairman Jerome Powell to lower interest rates, despite Powell’s warnings about the potential economic instability this could bring due to Trump’s tariffs. Powell indicated that the Fed would have made cuts by now if it weren’t for the uncertainties stemming from the new trade policies.